Business Studies Notes PDF

Wolinski and Coates is the major book (class studies) Halls (Homework mostly + Personal Reading) READ THE DID YOU KNOW -\> KEY TERM -\> THE EXPLAINING TERM The question/ Lesson is just the terms being converted back and forth to make you feel lost as you read through a pile of words. Method: -...

Wolinski and Coates is the major book (class studies) Halls (Homework mostly + Personal Reading) READ THE DID YOU KNOW -\> KEY TERM -\> THE EXPLAINING TERM The question/ Lesson is just the terms being converted back and forth to make you feel lost as you read through a pile of words. Method: - - - - UNIT 1: WOLINSKI AND COATES =========================== I. WHY BUSINESS EXIST: ---------------------- \- Open a business to make money (Profit) \- Purpose: To expand for people's needs, to provide goods and services for customers \- If needs are met in terms of cost and quality of the product and sểvices the business provides then business will be successful. \- Entrepreneur - people who take risks \- Mission - long-term intentions, ultimate purpose (it may change for purpose) - E.g. Amazon first mission is to sell books Facebook: to build social infrastructure for social diverse community McDonald: eat and drink NOTE: Mission \> Objectives Objectives: - - - - and then: - - - - - - - =\> SMART: Specific, Measurable, Agreed, Realistic, Time Bound Cash flow (?): The sufficiency of money flow in or out Social and Ethical Objectives: Evident in non-profit organizations such as charities, which are set up with the sole purpose of achieving particular social and ethical objectives. Other business objectives: diversification, market standing, meeting the needs of other stakeholders (?) NOTE PLATFORM WILL BE USED: Adobe Acrobat Reader Foxit - Teacher Communication loves it Java Script PRACTICE:  Competitive market, newly established, growth - 1. 2. In what specific format is the most proficient answer for a case study question? - II. MEASUREMENT AND IMPORTANCE OF PROFIT: ----------------------------------------- Revenue = price/unit \* average price A.O.V: average over value Fixed Cost - is the cost that stays the same (e.g. tuition fee university) - Variable Cost - is the cost that may varied and changed (e.g. raw materials) - tính từng chút một Profit = Total Revenue - Total Costs  1. 2. 3. Qualitative is the smaller one JOSHUA - - UNIT 2: UNDERSTANDING DIFFERENT FORMS OF BUSINESS ================================================= Public Sector Organizations: ---------------------------- \- Are owned, financed and run by private individuals. \- It ranges from the smallest sole trader to huge multinational business \- Most aim to make profit but there are some that are non-profit. Private Sector Organizations: ----------------------------- \- Also known as state owned or government organizations. \- They are owned and operated by the government whether national, regional or local level \- These organizations mainly provide essential services including education, health care, police services, refuse collection and street lighting. ### 1, Unincorporated: Sole trader, partnership There is no distinction in law between the individual owner and the business itself.  ### 2, Incorporated: PRIVATE/PUBLIC LIMITED COMPANY Has a legal identity that is separate from the individual\'s owners. E.g. Sole trader - tax is high in some countries (Korea). READ THE PARTNERSHIP PG 20 (BOOK NAME:) Unlimited liability: A situation in which the owners of a business are liable for all the debts that the business may incur --------------------------------------------------------------------------------------------------------------------------- E.g. You're a plumber service provider - your business can't pay its debt, you have to pay it yourself. - - Limited liability: A situation in which the liability of the owners of a business is limited to the fully paid-up value of the share capital. --------------------------------------------------------------------------------------------------------------------------------------------- ### **Example:** John invests \$10,000 in a company called **Tech Innovators Inc.**, purchasing 100 shares. Tech Innovators Inc. later faces financial difficulties and accumulates \$500,000 in debt. Because John is a shareholder in a corporation with limited liability, the most he can lose is his initial \$10,000 investment. His personal assets, like his house or car, are protected from being used to repay the company's debt. Thus, **limited liability** protects John from being held personally responsible for the company\'s debts beyond his investment, even if the company goes bankrupt. Characteristíc of a sole trader - - - - Characteristíc of a Private Limited Company: A small to medium sized company that is usually run by the family or the small group of individuals who own it. - - - Characteristic of Public limited Company: - - - - - Disadvantage (Public): - - - Share Capital and Market Capitalization: ---------------------------------------- Money given to a company by shareholders in return for a share certificate that gives them part ownership (MARKET CAP IS THE TOTAL VALUE OF THE ISSUED ORDINARY SHARES OF A PUBLIC LIMITED COMPANY) Dividend: A payment made by a company to its shareholders out of profits earned - boss are given that (IT IS CALCULATED BY MULTIPLYING THE CURRENT MARKET PRICE OF AN INDIVIDUAL SHARE BY THE NUMBER OF ISSUED ORDINARY SHARES). Market capitalism = Outstanding shares x Market value of 1 share Correlation - Needs of the shareholders is crucial I'M DOING IT: ------------- UNIT 3: STAKEHOLDER =================== \- An individual or group or other institution with a direct interest in the activities and performance of an organization or in a project to be undertaken by that organization. - - - - - - - - - Internal stakeholders - This group are closely connected to the organization and their needs are likely to have a strong influence on an organization. ------------------------------------------------------------------------------------------------------------------------------------------------------ E.g. owners, shareholders, employees, managers, etc. External stakeholders - This group has diverse needs and varying levels of influence on organization's ability to meet its objectives. -------------------------------------------------------------------------------------------------------------------------------------- Contractual relationship with organization: customers, suppliers, investors Because they share the image of the company Alternative stakeholder Classification: --------------------------------------- - - - - - - - - - Stakeholder needs: ------------------ - - - - - - - E.g. friends of the Earth and Greenpeace.  Conflict and Overlap of Stakeholders' need ------------------------------------------ - - - - For "why is it crucial question": What's the consequence -\> Why it happen -\> Why should it happen STUDY UNIT 1 2 3 6 (Wall) =\> STUDY FOR TEST BABE!! Ask Sady about the progress test It is what it is So far not (so) \` good Stakeholder Mapping: Stakeholder Interest: \- How interested different groups of stakeholders are to influence an organization's choice of strategies by taking some sort of action. \- Stakeholders\' level of interest is likely to be high if, for example: - - - Stakeholder Power: \- The extent which stakeholders have the power to impose their own nêds or objectives on an organization. \- This depends upon factors such as: - - - Managing relationships with stakeholders: Benefits of managing relationship:  I'M DOING IT: PAGE 98 Ex 8: Distinguish between the traditional shareholder approach and the alternative stakeholder approach in relation to the objectives of business: +-----------------------------------+-----------------------------------+ | Shareholder approach | Stakeholder approach | +===================================+===================================+ | The dominance the shareholder's | The perspective of stakeholder | | needs will be the main objective | emphasizes the requirements to | | | consider and try to meet, the | | Managers (owners - shareholders) | needs and objectives of wider | | are seen as responsible solely to | groups of individuals who have an | | the owners of the company. | interest in a company. | | | | | Everything manager do should be | It takes the view that companies | | for the direct interest of | benefit from cooperation with | | shareholders and their ain should | their stakeholder groups and from | | be to maximize shareholder value | incorporating the needs of all | | by striving for short-tẻm rewards | stakeholders into the | | (profits or dividends) | decision-making process | +-----------------------------------+-----------------------------------+ Ex 13: Two keys influence on the relationship of a business with its stakeholders: \- Stakeholders have status and power within or outside the organization and in relation to the project under consideration (social, economic or political status as well as positions of authority within the formal hierarchy of an organization). \- Stakeholders control resources relevant to the project being considered; this includes the control of relevant budgets and manpower within an organization. Ex 14: Two ways in which a business might attempt to manage the relationship between different stakeholders: \- Satisficing - the major strategy is usually the one that keeps all (or at least the most powerful) stakeholders happy through compromise negotiations \- Exercise of Power: This is when a deadlock is resolved by a senior figure forcing through a decision based simply on the power they possess. UNIT 7: SETTING MARKETING OBJECTIVES ==================================== Marketing: - Anticipating the customers' wants: - Satisfying customers' wants: - Meeting the needs of the organization: - Objectives: - - - - - - - - Market = total number of companies selling the same type of products. Market size = in currency units in number of units sold in total. Total number/ value of sales in one particular market. \*FacT: Monopoly is one company owns the market (e.g. Facebook) - - - - - - -